KATWE SMALL SCALE INDUSTRY
ASSOCIATION INFORMAL SKILLS TRAINING
PROGRAMME - UGANDA
Presented by
Obert Pimhidzai - AFTP2, & Mattea Stein- AFTDE
work done with
Bbira Bbosa-KASSIDA, Francisco Campos-AFTPM, Peter
Dhamuzungu-PSFU, Markus Goldstein-AFTPM, Antoinette
Schoar-MIT, Bilal Zia-DECFP
Global Workshop on
Development Impact Evaluation
in Finance and Private Sector
Rio de Janeiro, June 6-10, 2011
Informal sector biggest form of
non-farm employment in Uganda
2ND LARGEST CONTRIBUTOR TO NET
JOB CREATION IN UGANDA, 1992-2006
PROJECTED TO CONTRIBUTE TO 25%
OF NEW JOBS IN THE NEXT 10 YEARS
3,000,000
Self-emp &
unpaid family
worker nonagriculture
25%
2,500,000
2,000,000
Private wage
employment agriculture
4%
Private wage
employment non-agriculture
30%
1,500,000
1,000,000
Self-emp &
unpaid family
workers agriculture
40%
500,000
-
Wage
Agriculture
Non wage
Industry
All
Services
Wage
employment government
1%
….But productivity in the sector
is limited
LOW CAPITAL, RUDIMENTARY
TECHNOLOGY
POOR WORK ENVIRONMENT
….But productivity in the sector
is limited
LOW CAPITAL, RUDIMENTARY
TECHNOLOGY
POOR WORK ENVIRONMENT
…..will skills training improve
productivity and raise the quality
of employment in the sector?

In a 2009 study of micro enterprises in the informal
sector, entrepreneurs reported these major
constraints:
Low incomes
and
High risk of
failure, 50%
fail in first 3
years
Inadequate access to capital
Poor technical & business
skills, general lack of
knowledge
Difficult working environment
– double taxation, harassment
Poor business
strategy, low rates
of return
Poor knowledge of
the fee structure,
regulations e.t.c.
Intervention
KASSIDA SKILLS TRAINING
PROGRAMME
BARBER SHOPS AND
SALOONS
BUSINESS
PLANNING
MARKETING
FINANCIAL
MANAGEMENT
MANAGERIAL
(Managers onlysame course for all
sectors, 24hours of
training, 2hrs/day
sessions, starts
first
TECHNICAL
(tailored to each of
the 9 sectors – 44
hours of training,
at model
workshops,
2hr/day sessions
CAPENTRY
CATERING
ELECTRICAL
FITTING & MACHINING
FOUNDRY
KNITTING & TAILORING
METAL FABRICATON
SHOE MAKING
Outcomes
Household level
Enterprise level
Efficiency in
production
•Reduced time
taken to produce an
item
•Reduced cost of
production
•High product
quality
•Better workshop
organization
Formality
•Higher
registration
•Tax
compliance
Improvement in the
standard of living of
beneficiaries and their
dependants
Employee level
Firm Growth Marketing
•Higher
Skills &
employment
Innovation
•Increased
turnover
•Higher profits
•Better
Linkages and
innovation in
production
•Broadening
customer base
NETWORKING- Is new info/skills learned through the training
diffuse through business networks? How? Magnitude of impact?
Opportuniti Increased
es &working knowledge
•Technical
conditions
methods
•Earnings
•Started own
business
•Credit
•Open bank
account
•Number of jobs
offers (as a measure
of recognition of
improved capacity)
•Safety practices
Design - issues
Selection process
796 workshops in 9 sectors applied to KASSIDA’s training
Workshops stratified by sector & grouped into clusters (within
20m) - 228 clusters of firms identified
Similar clusters are paired according to size of cluster, sector,
size of firms, personal characteristics of entrepreneur.
of 114 clusters with 396 firms randomly selected to receive
KASSIDA’s training
…..choosing a cluster
Implementation stages
Firm registration
and Listing
Baseline survey
Intervention
Mini-follow up
End line survey
Descriptives from
preliminary baseline data
Sector
Female Workers
owned (mean)
Workers
(median)
Has a
Has an
Years of Owner business annual
education Age
plan
Budget
Keeps a
ledger
Average
Average
monthly
Monthly
profit (USD) turnover (USD)
Barbershops
and Saloons 91.3
2.2
2.0
9.7
34.5
13.0
14.5
11.6
148
492
Carpentry
6.4
2.3
1.0
10.1
38.7
14.9
19.2
8.5
156
866
Catering
Fitting &
Machining
98.2
2.4
1.0
7.6
37.0
8.3
7.3
3.7
86
445
0.0
2.9
3.0
12.4
48.1
7.1
50.0
7.1
2,868
8,060
Electrical
Foundry &
Forgery
Metal
fabrication
Shoe
making
9.1
5.7
1.0
11.2
38.0
18.2
9.1
18.2
371
1,167
21.3
1.7
1.0
7.4
36.0
13.1
18.0
4.9
128
641
3.7
4.0
2.0
9.7
41.9
13.5
13.0
12.0
296
1,770
8.3
2.6
5.0
9.3
35.3
5.6
19.4
13.9
224
609
Tailoring
64.6
0.7
0.0
9.6
36.0
7.3
10.9
3.1
146
371
ALL
44.0
2.3
1.0
9.3
37.9
10.7
13.5
7.7
236
993
Major source of skills
learning for the sector
Apprenticeship (informal)
Friends and relatives
Formal instutions
Self taught
Other
0
5
10
15
20
25
30
35
..as Uganda thinks about
skills development….

Evidence from the IE valuable for the
incorporation of informal skills training in the
BTVET strategy!!!
 Intervention a potential solution to how to
effectively reach people in the informal sector
who are currently excluded by the formal nature
of BTVET